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The Advantage of Temporary Holds: A Guide for Your Customers with Stripe Integration

Credit Card Hold / Authorize Hold

This article explains a new feature that can be enabled for customers who have a payment integration with Stripe. It's designed to provide a better experience and more secure transactions for both the customer and the business.

The "Why": Why Customers Want This Feature

Temporary holds are a common practice in many industries, from car rentals to hotels and online marketplaces. Here’s why it’s a good thing for your customers:

  • Transparency and Control: Instead of an unexpected charge appearing after a trip or service, a temporary hold communicates a clear plan upfront. Customers know exactly what's being held and why, which helps them manage their budgets more effectively.

  • Protection from Unexpected Surprises: This system provides a clear pathway for handling potential costs like late fees or damages. It prevents the frustration of a company having to chase down a customer for a payment, which can lead to disputes or difficult conversations.

  • Peace of Mind: Knowing that the funds are secured for any potential issues allows the customer to focus on enjoying the service without worrying about complex billing processes later on. It’s a seamless way to handle transactions with variable costs.

How It Works

For customers with Stripe payment integration, here's a simple breakdown of the process:

  • During Booking: When a reservation is made, two temporary holds are placed on the customer's credit or debit card. One is for the cost of the trip (hourly or daily rate), and the other is a $200 security hold. Both holds must be successful to confirm the reservation.

  • After the Trip: If the vehicle is returned on time and in good condition, the $200 security hold is automatically released. This typically happens within 72 hours, though it may take the customer's bank 3-7 business days to process the release.

  • If There Are Fees: In the event of an issue, such as a late return or damage, the security hold is used to cover the cost. Any remaining amount from the hold is then released back to the customer.

This temporary authorization hold is not a charge but a reservation of funds. It ensures that sufficient funds are available for the transaction without immediately debiting the account. Customers are notified via email whenever a hold is placed, charged, or released, ensuring they are always informed.